Minister welcomes Reserve Bank Branch boost to Santo’s growth
June 30, 2025 10:08 pm | Posted in Business News | Share now TwitterFacebook
By Hilaire Bule.
Minister of Lands and Member of Parliament (MP) for Santo Rural Rick Tchamako Mahe, has welcomed the groundbreaking of the Reserve Bank of Vanuatu’s (RBV) new branch in Luganville yesterday.
Mr. Mahe told the Daily Post that this move fits with the government’s plan to transform Santo — Vanuatu’s largest island — into the country’s economic hub.
“Efate is already saturated, but Santo has the potential to host more development projects to boost not only the island’s economy and the northern region, but Vanuatu’s economy as a whole,” he said.
The government has already launched several projects to support this vision, including construction and repair of key roads — South Santo road and East Santo road — the extension of hydropower at Fanafo, upgrades to Luganville’s water supply, repairs to all Luganville roads, and the expansion of Pekoa International Airport’s runway, scheduled to begin tomorrow.
Mr. Mahe said that last year, the government paid over VT600 million for land acquisition needed for the runway extension.
Half of the funds have been paid to leaseholders, with the remainder held in a trust pending identification of customary landowners.
Another important project supporting the economic hub plan is the marina development at Naoneban, where talks have already begun with the people of Malo.
With the marina and the Pekoa runway extension, tourists will find it easier to access the northern islands.
“We are currently seeing tar-sealed roads on Malekula, Ambae, and Pentecost, as well as the extension of Norsup runway.
“Naoneban will be a central point for tourists, who can then be dispatched to cultural sites on Malekula, the Ambae volcano, Pentecost’s land diving, and TORBA. With the Pekoa extension starting tomorrow and Naoneban, we could develop a model similar to Denarau in Nadi, Fiji,” he said.
To strengthen cooperation, Mr. Mahe met with his Fijian counterpart, Filimoni Vosarogo, in Suva last week to discuss land and resource governance.
The two ministers held an open and productive dialogue reaffirming shared values and goals in managing land and natural resources sustainably, ensuring benefits reach indigenous communities, and promoting regional solidarity.
Seven key areas of agreement and cooperation were identified, including technical exchange programmes, support for legal and policy reforms, empowering landowners through public-private partnerships, recognition of Vanuatu descendants in Fiji, housing and urban development exchange, investment collaboration via provident funds, and strengthening Melanesian solidarity.
Under the technical exchange programme, Fiji will host Vanuatu’s technical officers for missions focused on land surveying, valuation, registration systems, and digital reforms.
This initiative allows Vanuatu’s officers to learn from Fiji’s ongoing modernisation efforts.
Regarding legal and policy reforms, Mr. Vosarogo offered Fiji’s support to assist Vanuatu in developing policies and legislation that provide long-term land security and fair benefits for traditional landowners.
On empowering landowners through Public-Private Partnerships (PPPs), the ministers expressed concern over unsustainable investments that deliver only short-term returns.
They committed to advancing frameworks where landowners can participate as equity partners in developments on their land.
To recognise Ni-Vanuatu descendants in Fiji, Mr. Vosarogo confirmed Fiji’s commitment to providing secure land tenure for descendants of Ni-Vanuatu workers residing in Ovalau. The lease, which sits on state land, is ready for handover pending internal family resolution. Mr. Vosarogo pledged to keep the Vanuatu government informed throughout the process.
Mr. Mahe expressed interest in learning from Fiji’s public housing programmes as part of a housing and urban development exchange. Both ministers agreed to facilitate knowledge-sharing between their housing agencies and technical teams.
Mr. Vosarogo welcomed potential investments by Vanuatu’s National Provident Fund in Fiji’s tourism and real estate sectors, particularly in Nadi. This complements Fiji’s own interest in exploring investments in Vanuatu.
In reinforcing Melanesian solidarity, both leaders acknowledged the deep historical and cultural connections between the peoples of Fiji and Vanuatu.
Minister Mahe has thanked past and present governments for their efforts in making Santo an emerging economic hub of Vanuatu.
